Rotation back into technology ?

Last 5 trading days have been on the downside for the most part, for S&P 500, Technology , Sox and Russell......

Here is the performance chart for last 5 trading days since hitting all time highs :

Dow......... down .29%

S&P 500 down 1.00%

Russell down   2.44%

Nasdaq down   2.74%

Sox     down     4.91%

Here is RSI picture :

Nasdaq    46.51

Sox          48.69

S&P 500 58.26

Russell    62.90

Dow        73.28

It is clear from the above statistics, that some sectors are clearly overbought and other sectors are deeply oversold.

Euphoria has set in base metals, financials and steels..... may need a well deserved rest.....

Technology has seen major outflows since election, those who wanted out are out, thus less selling pressure and may actually see buying interest, based on relative valuation.

Investor sentiment is 56% bullish, which is a clear sign that optimism is rampant.

Q4 is known to be strong for technology, which ends in 19 trading days.....

Year end selling may involve quick money made in election favorites, next year capital gains or personal tax may be higher, so more reason for booking gains this year.

YES.... the nature of this market has changed, from heavy technology weighting to equal weight in technology.

Energy looks very attractive after OPEC production cutback...pundits were wrong as usual.

It is always important, to be ahead of the game in rotation.

Here is my portfolio allocation :

CMG    32.56%

BIDU   21.94%

CNQ    18.97%

AMD   11.57%

TWLO   8.66%

WB        6.30%

Sincere thanks to stocktrader for doing daily recap and his buy and sell information. My sister is going through treatment @ Memorial Sloan Kettering in New York since October 15th for Neuroendocrine, I wanted to see her after 2 treatment of embolization in liver. She is recovering nicely, thanks to specialists @ MSK. Visited Richmond VA, South Windsor CT, NYC and Fishkil NY. Met many relatives, i have not seen in 11 years.

BLOG does NOT give buy or sell.

Saleem